On Friday, former Microsoft Corp. (NASDAQ:MSFT) CEO Steve Ballmer expressed concern that President Donald Trump’s new tariffs could lead to global turmoil and negatively impact consumers, especially as Microsoft's stock faces a 14.03% drop year-to-date.
What Happened: In an interview with CNBC, Ballmer warned that the U.S. government's escalating tariffs would have far-reaching effects on the economy, including significant challenges for consumers and investors.
"As a Microsoft shareholder, this kind of thing is not good," he stated, noting that the new tariffs on imported goods—affecting over 100 countries—would likely create significant disruption, particularly in industries reliant on global trade, like tech.
"I took just enough economics in college — that tariffs are actually going to bring some turmoil," Ballmer added.
Ballmer, who has been involved with Microsoft since its early days, spoke alongside Microsoft co-founder Bill Gates and current CEO Satya Nadella at a celebration marking the company's 50th anniversary.
Ballmer, now the owner of the Los Angeles Clippers, called himself Microsoft’s largest individual shareholder. A regulatory filing from 2014, the same year he purchased the Clippers for $2 billion, revealed that he owned more than 333 million Microsoft shares at the time.
Why It Matters: Earlier this week, Microsoft reportedly halted the launch of some of its data center projects, both in the U.S. and internationally, despite committing $80 billion this fiscal year to AI-driven data center infrastructure.
Previously, Jeremy Siegel, a finance professor emeritus at Wharton School, compared Trump’s tariff policy to the Smoot-Hawley Tariff Act of 1930, which is often blamed for exacerbating the Great Depression.
Jim Cramer also criticized the tariffs as a “manmade disaster,” arguing they are not reciprocal and could cause significant market harm.
Conversely, JPMorgan analyst Thomas Kennedy sees tariffs as a potential catalyst for significant long-term transformation. He suggests that the age of globalization is over.
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She explained that this approach poses a significant challenge for many Asian nations, especially those with lower income levels, as it demands they purchase more American goods than they export to the U.S., a target that is difficult to achieve in the short term.
Price Action: Microsoft shares fell 3.56% on Friday, closing at $359.84. Over the past 12 months, the stock has declined by 15.44%, according to data from Benzinga Pro.
Benzinga Edge Stock Rankings gives Microsoft (MSFT) a growth rating of 64.59%. Curious how it stacks up against other companies? Click here to view the full analysis.
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